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Facts About Auto Insurance in Ontario

It pays to know what your insurance policy covers and
what options you have to increase your coverage.

Condominium Insurance - Not Just Contents Coverage

Condominiums are becoming increasingly popular in Canada. Whether you are a first time home buyer or a baby boomer downsizing many people are choosing the convenience and flexibility of the condominium lifestyle. As the condominium corporation is responsible for insuring the building many people mistakenly think that they do not need to purchase their own insurance. There are several areas of coverage included in a Condominium Unit Owner’s policy that are not covered in the Corporation’s policy and are critical for the owner’s protection and piece of mind.

A condominium policy covers your personal property in the unit and while temporarily removed. The amount of coverage is chosen by the condo owner. It is important to do a full inventory of your personal belongings to ensure that you have adequate coverage. It may not seem like much but when everything is factored in, including dishes, bedding, clothing and electronics it may be more than you think. Please visit the “Best Priced Home” section of our website to download a Home Inventory Check List.

Betterments and Improvements

This is an area where many condominium owners are underinsured. The Condo Corporation insures the structure and the common elements but the unit owner is responsible for any alterations or upgrades to their unit. All owners and prospective owners should find out what the definition of a “standard unit” is for their condominium. This is important for two reasons. Firstly, anything not part of the standard unit is your responsibility to insure. This may include appliances, fixtures, cabinets etc. Standard unit definitions vary widely between corporations. Secondly, if you are not the original owner of the unit you may not be aware of what has been changed or upgraded from the original unit. Even if you did not do the change yourself, as the current owner, it is your responsibility to insure it.

Loss Assessment and Unit Additional Protection

If the condo corporation’s insurance is not enough to cover a loss, unit owners may be required to share part of the loss including damages to common areas or to the individual unit. There may also be a case where the condo corporation’s deductible is quite large and is passed on to the unit owner(s) to cover. A Condominium Unit Owner’s policy will cover these types of assessments up the policy’s stated limits.

Buying a condominium is one of the largest purchases you will ever make. It is important to research all aspects to make sure that is it right for you and that all areas are covered. Please visit http://www.cmhc.ca/en/corp/nero/nere/2003/2003-05-26-1100.cfm to download The Condominium Buyer’s Guide from CMHC.

For further information on Condominium Unit Owner’s Insurance and to discuss your individual needs please contact one of our licensed insurance professionals.